Trove raises new finance as it targets Europe and luxury re-commerce
Re-commerce specialist Trove has closed a $77.5 million Series D funding round led by G2 Venture Partners, bringing its total funding so far to $122.5 million as it seeks to grow in Europe and enter luxury.
The investment increases the firm's valuation to between $200 million and $300 million and the company said it will use the new cash to “significantly expand its roster of brand partners, strengthen its technology and logistics infrastructure, enter the luxury vertical, and service a new customer audience in Europe”.
Trove is a branded re-commerce market leader and powers circular shopping for brands including Lululemon, Patagonia, REI, Nordstrom, Levi’s, Eileen Fisher, Arc’teryx and others.
Other participants in the funding round included Bank of Montreal, Capital One Ventures, Commerce Ventures, Wellington Management and all of Trove’s existing board investors.
CEO Andy Ruben said: “Consumer demand for resale is soaring and premium brands know it’s now a strategic imperative to control their brand and stay close to their customers by owning their trade-in and resale channels instead of handing them over to third-party marketplaces.”
It’s estimated that re-commerce will account for 14% of the apparel, footwear and accessories market by 2024, or roughly $60 billion, up from about 7% in 2020, the company said, citing research from Cowen.
Trove provides the technology platform and logistics brands use to control their own re-commerce channels and last year processed nearly 1 million unique items and managed over 10 million catalogue records, triple the number in 2019.
G2 Venture Partners clearly sees re-commerce as a big opportunity, citing the carbon footprint of the fashion industry and the drive toward a more sustainable future.
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